Investment News

Big push for ‘going global’ strategy

2015-5-8 9:44:05

Premier Li Keqiang on May 6 presided over a State Council executive meeting which decided to further streamline the administrative review and approval process, speed up the implementation of the “going global” strategy and carry out pilot programs on giving income tax deductions for the purchase of commercial health insurance.

Streamline Administration

The meeting decided that this year the government will further streamline the administrative review and approval process, transform government functions to remove obstacles for mass innovation and entrepreneurship as well as eliminate “blind spots” in market supervision.

* The State Council decided to further streamline the administration, delegate powers, publish the process of administrative approvals and reduce the time for giving approvals. More than 200 approvals given by the local government but mandated by the central government will be canceled. Provincial-level governments and institutions which have administrative functions will make their lists of powers and responsibilities open to the public.

* The government will set up a catalogue for investment project approvals and mandatory intermediary services that will be open to the public. It will speed up the establishment of an online approval and supervision platform for well-regulated management.

* The meeting decided to cancel approvals of vocational qualifications and study ways to build a management system for the list of vocational qualifications.

* The government will overhaul and regulate all kinds of fees. Fees that are unnecessary, unauthorized, overcharged or prolonged will be canceled or stopped. The government will also release a complete list of charges at the national, ministry and provincial levels.

* The meeting decided to simplify business registration by integrating business licenses, organization codes and taxation registration into one certificate. Credit information of companies will be open to the public on the Internet.

* The category of non-administrative review and approvals will be canceled, with 49 canceled and 20 turned into administrative approvals. Non-administrative approvals which do not involve the public will be regulated by a list of powers of the government bodies.

Push Chinese-made equipment to go global

The State Council promised “a strong tailwind” to help Chinese equipment makers go global and collaborate on production capacity.

* Describing the move as “pushing for upgrading of development by expanding opening up”, the meeting decided to focus on fields in which China has an advantage, including railways, electricity, telecom, building material and construction machines to meet the demands of various regions, especially nations along the Silk Road Economic Belt and 21st Century Maritime Silk Road. Chinese companies have been told to adopt flexible means in investment, construction and technology to push for exports and build up the image of Chinese equipment.

* Corresponding services from China such as maintenance and upgrading should also be provided abroad.

* The government will explore more ways to use foreign exchange reserves, raise the level of export credit insurance and build a trans-border renminbi payment system to facilitate equipment exports. Enterprises and financing institutions are encouraged to issue stocks and bonds to raise money at home and abroad.

* To simplify the management of outbound investment, the government will establish a joint platform with enterprises to promote international mutual recognition of standards, control risks and ensure fair competition. Industry associations and market intermediary agencies will be fully used to provide services concerning law, taxation and intellectual property.

Encourage commercial health care insurance

To relieve the burden of medical expenses on people, the meeting decided to develop commercial healthcare insurance together with the basic medical care system. People will enjoy income tax deductions for a maximum of 2,400 yuan ($387.12) annually under a pilot project to encourage people to buy comprehensive commercial healthcare insurance.


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